Correlation Between Coeur Mining and Triad Group
Can any of the company-specific risk be diversified away by investing in both Coeur Mining and Triad Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Coeur Mining and Triad Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coeur Mining and Triad Group PLC, you can compare the effects of market volatilities on Coeur Mining and Triad Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Coeur Mining with a short position of Triad Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur Mining and Triad Group.
Diversification Opportunities for Coeur Mining and Triad Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coeur and Triad is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Coeur Mining and Triad Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Group PLC and Coeur Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Coeur Mining are associated (or correlated) with Triad Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Group PLC has no effect on the direction of Coeur Mining i.e., Coeur Mining and Triad Group go up and down completely randomly.
Pair Corralation between Coeur Mining and Triad Group
Assuming the 90 days trading horizon Coeur Mining is expected to generate 1.55 times more return on investment than Triad Group. However, Coeur Mining is 1.55 times more volatile than Triad Group PLC. It trades about 0.05 of its potential returns per unit of risk. Triad Group PLC is currently generating about 0.03 per unit of risk. If you would invest 572.00 in Coeur Mining on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Coeur Mining or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coeur Mining vs. Triad Group PLC
Performance |
| Timeline |
| Coeur Mining |
| Triad Group PLC |
Coeur Mining and Triad Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coeur Mining and Triad Group
The main advantage of trading using opposite Coeur Mining and Triad Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coeur Mining position performs unexpectedly, Triad Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Triad Group will offset losses from the drop in Triad Group's long position.| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group PLC |
| Triad Group vs. Axfood AB | Triad Group vs. EVS Broadcast Equipment | Triad Group vs. Premier Foods PLC | Triad Group vs. Silvercorp Metals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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